The New Year has ushered in confirmation that the residential property is back in gain mode. Real Estate Institute figures now confirm an increase in both median values and sales volumes. The media has at long last jumped on this and are promoting what we have observed and reported for some months. Consequently we see 2020 as an exciting time for housing in Auckland.
Buyers are back out in force. We can already report a much more positive ‘sentiment’ – confidence has returned! The basic question is “will it last?” It is election year, that can often cause things to go into wait and see mode. Our sense however is that there is a general catch up in play.
Since 2015, until recent months, sales numbers have been falling. The foreign buyer ban was definitely part of this, as was a shift in the attitude from banks generally to what and how they might fund purchasers. Given the strength of immigration over the period and falling interest rates, we feel the lower sales volumes were driven by negative sentiment. As mentioned this is changing. We note several commentators/bank economists predicting an increase in house prices over the next year or three. We agree.
For home owners waiting for a good time to go to the market – this is it!
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